A break for small businesses — by voter request
The case for tax relief is a slam dunk. Congress needs to follow the Trump administration’s lead and pass clean, concise tax cuts for the overburdened small businesses we’re counting on to keep our economy humming.
Here in Colorado, our nearly 600,000 small business account for about half of our employees in the private sector – that’s more than a million jobs, with over 30,000 hires added every year. Unfortunately, just about all of those businesses are saddled with an unfavorable federal tax rate as so-called “pass-through” entities. Pass-through businesses are taxed at the highest marginal individual rate, which stands at 39.6 percent. With state and local taxes included, our small businesses can lose half of their income to the government every year. As you might imagine, this makes growing a business and hiring new employees very difficult.
It’s a problem replicated all across the country. With companies employing 500 or fewer workers making up more than 99 percent of U.S. firms, small businesses have more than earned their reputation as the backbone of the national economy. But the current tax code deals a harsh blow to small businesses and the many millions who depend on their well-being.
Over the years, my husband Rick and I grew our family business in Colorado, and we’ve learned the hard way how much small businesses have to work just to make up for what today’s outdated tax system unfairly takes away. Money that would otherwise be used to produce goods and services, reward employees, and boost economic growth instead goes to the tax man.
And that’s not even counting money diverted to tax preparers, whom small businesses must increasingly rely on just to survive filing season. Tax time costs Americans 6 billion hours every year! This includes up to two work weeks for one out of every three small businesses, according to this year’s tax survey from the U.S. Small Business Administration. All told, tax compliance sets us back more than $400 billion per year.
If you want to grow the economic pie for working Americans, that’s not just unsustainable – it’s unconscionable.
This year, voters have eagerly awaited congressional action to solve our tax problem. Now, with just a few months left on the legislative calendar, Americans want results. Polling by the American Action Network found about 75 percent nationwide agreed that passing a comprehensive tax bill was important for Congress to do this year.
Among specific tax policies, meanwhile, respondents considered it most important to lower rates for middle-class taxpayers. The best way to reach the tax goals voters care about most is to ensure small businesses are freed from their crushing individual rates.
Accountability is important. The White House has recognized the importance of delivering for voters, putting before Congress proposals that would cut federal small business taxes from a maximum of 40 percent to just 25 percent. The Trump administration has also wisely proposed doubling the standard deduction.
Now, Republican lawmakers need to do their part. There’s broad public support for bipartisan tax relief and voters expect Republican leadership to get the job done. The time for talk is over. The time to cut taxes is now.

